Ethereum Gains Momentum as Investors Withdraw Holdings:
ETH Price Movement:
Ethereum has exhibited slight signs of recovery, briefly touching a 12-day peak of $2,832 on February 17 before retreating to $2,720. Despite the dip, ETH has climbed 2% in the last 24 hours, outpacing most alternative cryptocurrencies, while the overall digital asset market has slumped by 2.4%.
Declining Exchange Reserves:
According to Santiment, a key trend is emerging—ETH is being transferred away from trading platforms at a rapid rate, with only 6.38% of the total supply still available on exchanges. This signals that investors are accumulating rather than liquidating, reducing the probability of a major sell-off. However, analysts emphasize that this trend is more relevant for long-term market dynamics rather than short-term speculation.
Community Sentiment and Market Outlook:
After a phase of subdued performance, interest in Ethereum has resurfaced this month. Some market observers predict a rebound once broader market conditions improve.
However, not all analysts are optimistic. Crypto commentator Lark Davis cautioned that Ethereum often experiences minor rallies before broader market corrections.
Ethereum’s performance against Bitcoin improved, with the ETH/BTC ratio rising 7% on February 17 to reach 0.029. Despite this increase, the ratio remains near its lowest levels since late 2020.